Nov. 6, 2009 (TheNewswire.ca) --
Petrostar Petroleum Corporation (TSX-Venture: PEP, Frankfurt: LMQ; "Petrostar" or the "Company") is pleased to make the following announcement:
The Company has engaged the services of Wakabayashi Fund LLC of Tokyo, Japan. Wakabayashi Fund LLC will provide Institutional Investor Relations and Investment Banking Consulting Services to arrange CAD$3.3 million in working capital for Petrostar. The term of the contract is six months with an option to extend the Investor Relations contract. For its services, Wakabayashi Fund LLC will receive success fees on all funds raised at the rate of 7% (or such lesser amount as permitted by the TSX Venture Exchange). Additionally, for Investor Relations Services, Wakabayashi Fund will be paid a USD$20,000 retainer and will be issued 1.5 million share options exercisable at a price of CAD$0.10 for a period of one year. Options will vest to the Wakabayshi Fund LLC as permitted under TSX Venture Exchange rules.
Scope of Services
The emphasis of the funding project and investor relations services shall be personal introduction of Petrostar to money managers, equity fund managers, hedge fund managers, pension fund managers, financial analysts, institutional brokers, venture capitalists, investment bankers and wholesale & retail markets. Particular emphasis will be on assisting Petrostar in international branding of the Company's Electric Tank Heater (ETH) and Down Hole Heating Tool (DHT) technologies and to highlight Petrostar's plans to further develop and explore the Company's Bakken Formation lands in S.E. Saskatchewan and S.W. Manitoba, Canada.
About Wakabayshi Fund LLC
Wakabayashi Fund is a private equity firm with offices in Tokyo, Japan and New York, NY. Wakabayashi provides corporate capitalization and institutional investor relations consulting services. Wakabayashi Fund may invest on a principal basis and acts in an institutional agency capacity to procure capital for profitable small- and mid-cap companies. Wakabayashi Fund's premise is based on established relationships and its reputation for consistently delivering relevant information and insight. Its extensive relationship database is the culmination of its efforts over the last 23+ years of working on Wall Street and in Tokyo. Wakabayashi Fund has successfully funded over $600 million of project financing over the last year.
On behalf of the Board of Directors,
Bruce Scafe, President and Director
Safe Harbor Statement and Disclaimer:
This Press Release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. A statement identified by the words "expects", "projects", "plans", and certain of the other foregoing statements may be deemed forward-looking statements. Although Petrostar Petroleum Corporation (TSXV:PEP) believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this press release. These include risks inherent in the development and production of oil wells, including risks of fire, explosion, blowout, pipe failure, casing collapse, unusual or unexpected formation pressures, environmental hazards, and other operating and production risks inherent in oil production activities, which may temporarily or permanently reduce production or cause initial production or test results to not be indicative of future well performance or delay the timing of sales or completion of production operations; risks with respect to oil prices, a material decline in which could cause the Company to delay or suspend planned drilling operations or reduce production levels; and risks relating to the availability of capital to fund drilling operations that can be adversely affected by adverse drilling results, production declines and declines in oil prices and other risk factors.
Copyright (c) 2009 Thenewswire.ca - All rights reserved.
